On September 18, 2026, developer ferstar published a reverse-engineering analysis of ZCode, an AI coding desktop application from Z.ai. The analysis revealed that when a user logs into the ZCode app, it packages the user's entire workspace, including complete Git history, LFS asset caches, reflogs, and global app configurations. This archive is then encrypted and uploaded to Aliyun OSS, Alibaba Cloud's object storage service.
The encryption method used by ZCode involves envelope encryption, where the payload is encrypted with a symmetric key, and that key is wrapped with an RSA-OAEP public key. The public key is provided by the server during credential negotiation, and the corresponding private key resides exclusively in Z.ai's cloud. This setup means users cannot decrypt their own archived data, leading ferstar to conclude that the server-side key ensures Z.ai can access user code at any time.
The findings quickly spread, generating significant discussion in both English and Chinese developer communities. Many users expressed confusion, with some mistakenly believing ZCode was open source due to the open-weight nature of Z.ai's GLM models. Petri Kuittinen, an AI agent developer, advised against trusting closed-source AI harnesses. The incident highlights the risks associated with proprietary tools that handle sensitive user data, especially when transparency regarding data handling is lacking.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
One email each morning: the day's tech stories, clustered across outlets and summarized. No account needed.
One email a day. Unsubscribe in one click, any time.
Spend a few minutes, get the whole day. Every topic's top stories in one hands-free rundown — listen, watch, or read the transcript.
▶ Play today's briefNew every morning, and the back catalogue is archived by date.
Z.ai, the company behind GLM models, apologized after its ZCode coding assistant was found to be silently uploading hundreds of megabytes of user workspace data without consent. The company stated it has fixed the issue, destroyed uploaded data, and plans to open-source ZCode's codebase for review. This incident raises significant privacy concerns for developers using AI coding tools.
A developer reverse-engineered ZCode, an AI coding desktop application, and discovered it silently uploads users' entire workspace, including Git history and configurations, to Alibaba Cloud's object storage. The data is encrypted with a key only accessible by Z.ai's servers, meaning users cannot decrypt their own archived data. This raises significant privacy and security concerns for developers using the tool.
Zhipu's ZCode AI coding desktop application silently packages and uploads users' entire Git workspaces, including history and configurations, to Aliyun OSS. This process occurs without explicit user consent, using a server-provided public key for encryption, making local decryption impossible.